Social security contributions for sole traders and LTD companies in Slovenia have changed in the year 2021. Social security contributions for a sole trader are adjusted throughout the year. How much are they in 2021 and how do they adjust?
What are the social security contributions?
Social security contributions are payments that people who are employed or self-employed pay. They ensure the system of social security in Slovenia. The social contributions are:
- for the pension and disability insurance,
- for the medical insurance,
- contributions for parental care and
- the contributions for employment insurance.
Most often, the accountant does the payment orders. In case you need support, accounting experts at DATA would be happy to assist you.
Social security contributions for sole traders in the year 2021
Social contributions for sole traders for the month of February of the year 2021 amount to 425,43 EUR. Contributions for pension and disability insurance increased the most in one year, by 14,95 EUR (they now amount to 271,19 EUR ). The health insurance contributions increased a little bit less. Compared to those in the year 2020, they are now higher by 8,25 EUR (they amount to 149,79 EUR). Contributions for parental care increased in February by 0,12 EUR (and are now 2,22EUR). The employment contributions increased by 0,13 EUR and are now 2,23 EUR.
The first time you register as a sole trader, you also have lower contributions
Are you registering as a sole trader for the first time? Were you not registered as a part-time sole trader in the past? If you also were not an independent holder of an activity, such as a worker in culture you will have a right to a relief in the year 2021. Because of that the social security contributions will be lower. In the first year you will pay only 50% for the pension and disability insurance. And in the second year you pay only 30% of these contributions.
Sole traders pay the contributions for the past month
According to Article 353 of the Tax Procedure Act (ZDavP-2), the self-employed must submit a form to the tax office of the no later than the 15th of the month for the past month. You must pay them by the 20th day of the month for the previous month. If you want to learn more about the law on the payment of social security contributions, our legal advisors can help.
Sole traders pay social security contributions in one payment!
You can pay the social security contributions for sole traders all at once. This way you avoid more commissions that the banks charge when you make a single payment.
Social security contributions are also a bit higher for owners of the LTD companies
The minimum contribution base for shareholders is 90% of the last known average annual salary. The average annual salary for the year 2020 is 1,856.20 EUR, which means that the minimum basis for the contributions in this category is 1,670.58 euros. The minimum social security contributions for the shareholders in the LTD company (under the insurance base 040) amount to 638,16 EUR for the year 2021.
Do you need help with your business in Slovenia, EU? Contact DATA for support!
Do you plan to start a business in Europe? Choose Slovenia! Send us an email to data@data.si. You can also call us on +386 1 6006 270/+386 1 6006 274 (our landline). You can also use our Viber/Whatsapp +386 40 530 718/+386 64 173 023. We are also available on skype data.business7. Also, you can follow us on Facebook. Also, for more information we recommed that you attend our free webinar on business setup in Slovenia.
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